IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v100y2024i2p199-216.html
   My bibliography  Save this article

Mind the gap: National brands’ sensitivity to price and line-length differentials at hard discounters versus conventional retailers

Author

Listed:
  • van der Plas, Joep
  • Dekimpe, Marnik G.
  • Geyskens, Inge

Abstract

Hard discounters are increasingly selling national brands that previously were only sold through conventional retailers. While this trend is gaining traction across various product categories and countries, the marketing literature has provided scant empirical evidence on the market-response effects of these brands at hard discounters, while conceptual perspectives remain conflicting.

Suggested Citation

  • van der Plas, Joep & Dekimpe, Marnik G. & Geyskens, Inge, 2024. "Mind the gap: National brands’ sensitivity to price and line-length differentials at hard discounters versus conventional retailers," Journal of Retailing, Elsevier, vol. 100(2), pages 199-216.
  • Handle: RePEc:eee:jouret:v:100:y:2024:i:2:p:199-216
    DOI: 10.1016/j.jretai.2024.05.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S002243592400023X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretai.2024.05.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dominique M. Hanssens, 2018. "The value of empirical generalizations in marketing," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 6-8, January.
    2. Yuri Peers & Harald J. van Heerde & Marnik G. Dekimpe, 2017. "Marketing Budget Allocation Across Countries: The Role of International Business Cycles," Marketing Science, INFORMS, vol. 36(5), pages 792-809, September.
    3. Inge Geyskens & Barbara Deleersnyder & Marnik G. Dekimpe & Didi Lin, 2024. "Do consumers benefit from national-brand listings by hard discounters?," Journal of the Academy of Marketing Science, Springer, vol. 52(1), pages 97-118, January.
    4. Kathleen Cleeren & Frank Verboven & Marnik G. Dekimpe & Katrijn Gielens, 2010. "Intra- and Interformat Competition Among Discounters and Supermarkets," Marketing Science, INFORMS, vol. 29(3), pages 456-473, 05-06.
    5. Hunneman, Auke & Verhoef, Peter C. & Sloot, Laurens M., 2021. "The impact of hard discounter presence on store satisfaction and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    7. Lim, Leon Gim & Tuli, Kapil R. & Dekimpe, Marnik G., 2018. "Investors' evaluations of price-increase preannouncements," International Journal of Research in Marketing, Elsevier, vol. 35(3), pages 359-377.
    8. Ruth N. Bolton & Venkatesh Shankar & Detra Y. Montoya, 2010. "Recent Trends and Emerging Practices in Retailer Pricing," Springer Books, in: Manfred Krafft & Murali K. Mantrala (ed.), Retailing in the 21st Century, pages 301-318, Springer.
    9. Nevo, Aviv, 2001. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Econometrica, Econometric Society, vol. 69(2), pages 307-342, March.
    10. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    11. ter Braak, Anne & Geyskens, Inge & Dekimpe, Marnik G., 2014. "Taking private labels upmarket: Empirical generalizations on category drivers of premium private label introductions," Journal of Retailing, Elsevier, vol. 90(2), pages 125-140.
    12. Lourenço, Carlos J.S. & Gijsbrechts, Els, 2013. "The impact of national brand introductions on hard-discounter image and share-of-wallet," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 368-382.
    13. Lynch, John G, Jr & Srull, Thomas K, 1982. "Memory and Attentional Factors in Consumer Choice: Concepts and Research Methods," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(1), pages 18-37, June.
    14. Ailawadi, Kusum L. & Beauchamp, J.P. & Donthu, Naveen & Gauri, Dinesh K. & Shankar, Venkatesh, 2009. "Communication and Promotion Decisions in Retailing: A Review and Directions for Future Research," Journal of Retailing, Elsevier, vol. 85(1), pages 42-55.
    15. Gurumurthy Kalyanaram & Russell S. Winer, 1995. "Empirical Generalizations from Reference Price Research," Marketing Science, INFORMS, vol. 14(3_supplem), pages 161-169.
    16. Sungho Park & Sachin Gupta, 2012. "Handling Endogenous Regressors by Joint Estimation Using Copulas," Marketing Science, INFORMS, vol. 31(4), pages 567-586, July.
    17. Gijsbrechts, Els & Campo, Katia & Vroegrijk, Mark, 2018. "Save or (over-)spend? The impact of hard-discounter shopping on consumers' grocery outlay," International Journal of Research in Marketing, Elsevier, vol. 35(2), pages 270-288.
    18. Briesch, Richard A, et al, 1997. "A Comparative Analysis of Reference Price Models," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(2), pages 202-214, September.
    19. Vincent R. Nijs & Marnik G. Dekimpe & Jan-Benedict E.M. Steenkamps & Dominique M. Hanssens, 2001. "The Category-Demand Effects of Price Promotions," Marketing Science, INFORMS, vol. 20(1), pages 1-22, September.
    20. Widdecke, Kai & Keller, Wiebke & Gedenk, Karen & Deleersnyder, Barbara, 2023. "Drivers of the synergy between price cuts and store flyer advertising at supermarkets and discounters," Other publications TiSEM 15e8cbcc-02a9-4441-ad2b-2, Tilburg University, School of Economics and Management.
    21. van Ewijk, Bernadette J. & Gijsbrechts, Els & Steenkamp, Jan-Benedict E.M., 2022. "What drives brands’ price response metrics? An empirical examination of the Chinese packaged goods industry," International Journal of Research in Marketing, Elsevier, vol. 39(1), pages 288-312.
    22. Adina Bărbulescu Robinson & Kapil R. Tuli & Ajay K. Kohli, 2015. "Does Brand Licensing Increase a Licensor's Shareholder Value?," Management Science, INFORMS, vol. 61(6), pages 1436-1455, June.
    23. Dekimpe, Marnik G. & van Heerde, Harald J., 2023. "Retailing in times of soaring inflation: What we know, what we don't know, and a research agenda," Journal of Retailing, Elsevier, vol. 99(3), pages 322-336.
    24. Koschmann, Anthony & Isaac, Mathew S., 2018. "Retailer Categorization: How Store-Format Price Image Influences Expected Prices and Consumer Choices," Journal of Retailing, Elsevier, vol. 94(4), pages 364-379.
    25. Koen Pauwels & Shuba Srinivasan, 2004. "Who Benefits from Store Brand Entry?," Marketing Science, INFORMS, vol. 23(3), pages 364-390, July.
    26. Marc Fischer & Sönke Albers & Nils Wagner & Monika Frie, 2011. "Practice Prize Winner --Dynamic Marketing Budget Allocation Across Countries, Products, and Marketing Activities," Marketing Science, INFORMS, vol. 30(4), pages 568-585, July.
    27. Widdecke, Kai A. & Keller, Wiebke I.Y. & Gedenk, Karen & Deleersnyder, Barbara, 2023. "Drivers of the synergy between price cuts and store flyer advertising at supermarkets and discounters," International Journal of Research in Marketing, Elsevier, vol. 40(2), pages 455-474.
    28. van Heerde, Harald J. & Dekimpe, Marnik G., 2024. "Household and retail panel data in retailing research: Time for a renaissance?," Journal of Retailing, Elsevier, vol. 100(1), pages 104-113.
    29. Gielens, Katrijn & Ma, Yu & Namin, Aidin & Sethuraman, Raj & Smith, Ronn J. & Bachtel, Robert C. & Jervis, Suzanne, 2021. "The Future of Private Labels: Towards a Smart Private Label Strategy," Journal of Retailing, Elsevier, vol. 97(1), pages 99-115.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bombaij, Nick, 2021. "Effectiveness of loyalty programs," Other publications TiSEM 095c506d-5b5c-4ea3-9b41-a, Tilburg University, School of Economics and Management.
    2. Inge Geyskens & Barbara Deleersnyder & Marnik G. Dekimpe & Didi Lin, 2024. "Do consumers benefit from national-brand listings by hard discounters?," Journal of the Academy of Marketing Science, Springer, vol. 52(1), pages 97-118, January.
    3. Elshiewy, Ossama & Peschel, Anne O., 2022. "Internal reference price response across store formats," Journal of Retailing, Elsevier, vol. 98(3), pages 496-509.
    4. van Heerde, Harald J. & Dekimpe, Marnik G., 2024. "Household and retail panel data in retailing research: Time for a renaissance?," Journal of Retailing, Elsevier, vol. 100(1), pages 104-113.
    5. Gielens, Katrijn & Dekimpe, Marnik & Mukherjee, A. & Tuli, Kapil R., 2023. "The future of private-label markets: A global convergence approach," Other publications TiSEM 06f4bad4-fc32-42f4-8b7f-2, Tilburg University, School of Economics and Management.
    6. Gielens, Katrijn & Dekimpe, Marnik G. & Mukherjee, Anirban & Tuli, Kapil, 2023. "The future of private-label markets: A global convergence approach," International Journal of Research in Marketing, Elsevier, vol. 40(1), pages 248-267.
    7. Lim, Leon Gim & Tuli, Kapil R. & Dekimpe, Marnik G., 2018. "Investors' evaluations of price-increase preannouncements," International Journal of Research in Marketing, Elsevier, vol. 35(3), pages 359-377.
    8. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    9. Bombaij, Nick J.F. & Dekimpe, Marnik G., 2020. "When do loyalty programs work? The moderating role of design, retailer-strategy, and country characteristics," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 175-195.
    10. Biondi, Beatrice & Cornelsen, Laura & Mazzocchi, Mario & Smith, Richard, 2020. "Between preferences and references: Asymmetric price elasticities and the simulation of fiscal policies," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 108-128.
    11. Dawes, John, 2022. "Factors that influence manufacturer and store brand behavioral loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    12. Moon, Sangkil & Voss, Glenn, 2009. "How do price range shoppers differ from reference price point shoppers?," Journal of Business Research, Elsevier, vol. 62(1), pages 31-38, January.
    13. Hökelekli, Gizem & Lamey, Lien & Verboven, Frank, 2017. "Private label line proliferation and private label tier pricing: A new dimension of competition between private labels and national brands," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 39-52.
    14. Haans, A.J. & Gijsbrechts, E., 2011. "One-deal-fits-all? : On category sales promotion effectiveness in smaller versus larger supermarkets," Other publications TiSEM 2c1a69db-bdfa-4988-a84c-4, Tilburg University, School of Economics and Management.
    15. Hökelekli, Gizem & Lamey, Lien & Verboven, Frank, 2017. "The battle of traditional retailers versus discounters: The role of PL tiers," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 11-22.
    16. Robert Slonim & Ellen Garbarino, 2009. "Similarities and differences between stockpiling and reference effects," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 351-371.
    17. Ashish Pandey, 2021. "Reference Prices and Turnover: Evidence from Small-Capitalization Stocks," JRFM, MDPI, vol. 14(1), pages 1-14, January.
    18. Celine Bonnet & Zohra Bouamra-Mechemache & Gordon J Klein, 2022. "National brands in hard discounters: market expansion and bargaining power effects," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(5), pages 1113-1145.
    19. Ioana Popescu & Yaozhong Wu, 2007. "Dynamic Pricing Strategies with Reference Effects," Operations Research, INFORMS, vol. 55(3), pages 413-429, June.
    20. Sojin Jung & Hyeon Jeong Cho & Byoungho Ellie Jin, 2020. "Does effective cost transparency increase price fairness? An analysis of apparel brand strategies," Journal of Brand Management, Palgrave Macmillan, vol. 27(5), pages 495-507, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jouret:v:100:y:2024:i:2:p:199-216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.